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22 December, 02:32

The City of Tutland issued $10 million, 6 percent, 10-year bonds at 101 to finance refurbishment of its water utility fund equipment. The bond issuance is recorded in the water utility enterprise fund as

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  1. 22 December, 02:54
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    The bond issuance is recorded as bonds payable of $10 million and premium on bonds payable of $100,000.

    Explanation:

    Since the bond is payable at 101, with a 6% rate for 10 years, after calculation you will find out that the bond payable is $100000 (10 year-bond payable at 101). The bond payment will be premium, meaning the payment of complete $10million over the course of 10years (apart from the $100000 payable bond)
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Home » Business » The City of Tutland issued $10 million, 6 percent, 10-year bonds at 101 to finance refurbishment of its water utility fund equipment. The bond issuance is recorded in the water utility enterprise fund as
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